REG - Goodwin PLC - March 2025 Trading Update

GoodwinAnnouncement

19/03/2025 08:00

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RNS Number : 2754B  Goodwin PLC  19 March 2025

GOODWIN PLC
MARCH 2025 TRADING UPDATE

 

We are pleased to report that as of the end of February, the Group's forward
order book has reached a new record of £300 million. This milestone reflects
the strength of our long-term established contracts and the robustness of our
business activities. As a result, we remain on track to deliver second-half
profits comparable to those of the first half of the year.

 

One of the recent contributors to this success has been Noreva, our
specialised nozzle check valve company based in Germany. Noreva has secured
the largest order in its history-a $15 million contract to supply valves for
an LNG project. This contract, to be fulfilled over the next two years,
positions us well to benefit from the expected release of further LNG
projects, in light of the growing global demand for LNG.

 

The vertical integration within our Group continues to provide a substantial
competitive advantage. A significant proportion of the castings for Noreva's
major order will be sourced from Goodwin Steel Castings (GSC), our own
foundry.  Even though we are now casting at a rate of 10 Self Shielded Boxes
(SSBs) per month for the nuclear decommissioning market, as well as continuing
to cast components for the military contracts that GSC has won, all with
multi-year delivery profiles and high likelihood of repeat orders, the foundry
still has capacity to take on additional contracts. This puts us in an
excellent position to continue to contribute to national strategic defence
procurements in both the UK and USA.

 

Looking ahead, the Mechanical Division is poised for further success. While
the majority of orders received this year will start to deliver financial
returns in the next fiscal year, we are confident that this momentum will
continue to build. Our significant investment over the past decade has
equipped the Mechanical Division with the necessary facilities, size, and
capability to handle increasing workloads across all areas. Our investment
into the Goodwin Engineering Training Centre has also supported this growth by
successfully operating for over 13 years and training over 300 apprentices to
date.  It is these individuals who now form part of the Group's highly
skilled workforce that is required to sustain our expansion.

 

Meanwhile, our Refractory Division continues to grow and perform well. The
investment casting markets, particularly in the jewellery sectors are
expanding at an impressive rate, exceeding 10% growth in certain regions. As a
global market leader, we are benefiting directly from this trend, with our
powder companies in China, India and Thailand achieving record in-month
results compared to previous years.

 

Capital expenditure across the Group has decreased significantly as expected.
The primary ongoing project, which is non customer funded, is the construction
of a new 1,200 m² building at Noreva. Over the next few months, once the
equipment has been delivered and installed, this facility will house a CNC
press operation converting Duvelco polyimide resin powder into precision
pressed parts. With the reduced capital expenditure and our improved
profitability, we have successfully reduced Group net debt by a further £10
million since the half-year mark.

 

Finally, with respect to dividend payments, we re-confirm that the second and
final instalment of 66.5p per share for the year ending 30th April 2024,
approved at our last Annual General Meeting on 2nd October 2024, will be paid
on 11th April 2025 to shareholders registered on 21st March 2025.

 

The Board is delighted with the Group's performance and the strategic
positioning we have achieved. With our record order book, expanding
capabilities, and strong financial foundation, we are well-placed to sustain
our success and drive further growth in profitability.

 

T.J.W. Goodwin

Chairman

 

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